The Good Fashion Fund (GFF), a Netherlands-based investment fund promoting sustainable practices in the fashion industry, has made its first investment in Bangladesh.
The $1 million funding will support Progress Apparel Ltd.’s investment in a modern in-house washing plant located at the Adamjee EPZ's factory in Narayanganj, Dhaka.
The washing plant will be equipped with state-of-the-art washing, drying and hydro machinery selected for its efficient use of water and chemicals, said a media release on Monday.
GFF’s investment - which is structured through Progress Apparels’ holding company in Hong Kong, PDS Ltd. - is enabling the company as a new player in the textile sector, to access international funding whilst promoting sustainable investments.
GFF’s investment in the in-house washing plant not only generates savings in water and chemical usage compared to conventional machinery, but also promotes supply chain traceability and transparency as washing is no longer outsourced, and the factory is now well capable of monitoring water, energy and chemical usage and the social well-being of its employees.
Limiting transport to and from the outsourced facility will further reduce emissions.
Progress Apparels Limited is a ready-made garment producer established in 2017 in Bangladesh.
The company is part of PDS Limited. The facility produces woven bottoms for popular international brands and retailers.
They have a production capacity in excess of 1,000,000 pieces per annum which is set to increase due to operational efficiencies brought about by the GFF investment.
Speaking on the conclusion of the investment, Pallak Seth, Executive Vice Chairman, PDS Limited said, “PDS has more than two decades of expertise in the apparel value chain and established itself as a favoured collaborator for over 200 prominent global retail brands."
"As a socially responsible corporate entity and a trusted partner of retailers, we are dedicated to upholding our obligations to both our customers and the environment. Our association with the Good Fashion Fund serves as a testament to PDS's commitment to collaborating with esteemed institutions that prioritize environmental sustainability and circularity.”
Sanjay Jain, Group CEO, PDS Limited, “Over the past year, our manufacturing business has achieved a full year of profitability. This investment in the wash plant has not only empowered Progress Apparels to enhance its manufacturing capabilities but also gained the advantage of Good Fashion Fund's knowledge in sustainable practices and cutting-edge technology implementation. This investment allows us to leverage their expertise for the betterment of our operations and overall sustainability goals.”
The GFF is initiated by the Laudes Foundation for financing is to be used to invest in impact equipment that delivers both economic growth and good fashion practice.
Bob Assenberg, Fund Director of the Good Fashion Fund, spoke on this investment.
“We are excited to announce our first investment in Bangladesh and to be associated with a sustainability-oriented manufacturer such as Progress Apparels. This partnership demonstrates that sustainability can go hand-in-hand with economic savings and that it is essential towards transforming the apparel supply chain. We hope industry stakeholders will make concerted efforts in making such investments more accessible in Bangladesh.”
Anita Chester, Managing Director of Laudes India, commented that “Sustainable manufacturing practices and processes are the need of the hour. They are especially critical in key manufacturing regions like Bangladesh where support to producers is critical to showcase the immense opportunity to decarbonise while ensuring a socially responsible transformation.”
The total investment made at the manufacturing facility has been seen as a testimony to PDS’s pledge to make the apparel manufacturing value chain sustainable and environmentally ethical for all stakeholders, the press release said.
